It's a sandbox issue 100%.
I think you're correct about the app group entitlement causing the issue here - thanks for the lead.
The Info.plist needs to include the com.apple.security.application-groups key for both apps from what I understand.
Electron builder does have a property for adding keys to that plist (https://www.electron.build/mas#extendinfo) so that's my next adventure.
Topic:
App & System Services
SubTopic:
Processes & Concurrency